AORlCl'LTrRAL APPHOIMIIATIOX Bfl.I^ 1024. M97 



uimI 1 aiiticipHtc tlmt in spito of tlu' fiirt timt it Iuim Imth inmiiMl only 

 six weeks, we will he out of the firinlM in u very xhort lirm*. Thw 

 study cousichMN such institutions us the Floriihi C'itnis Kxrhn 

 and the ohh'r coinpanifs that havr h«'en futiclionin^j for n h>fi^ tiim-. 

 jin<l the cooperative methods used in their or^^atn/ation. 



This study will he contiinied so that so fur as the lepal phases are 

 <'oncerned, we will have a very complete set of facts ami a very jjoo<l 

 hack^jround for the administration of the Capper- Volst<>ad Act, if 

 the se<'retary should find it necessary to lake any acti(»n under thftt 

 law. 



Mr. .Vndkkson. To wlml extent are ihe vaiious .States enacting; 

 special laws which estahlish the le<;nl ••nfitx of tin-,.. (•i.ii|)..rMtiv .-.. mti'I 

 tne liahilities of the memhers^ 



Mr. Tennv. \V\\y. 1 should say that durinj? the last three years 

 aipiiroximately 20 States have passed new lefjislation defining; the 

 lield (»f cooperati^e marketin<; associations. Many of the other 

 States had satisfactory laws prior to that time, an<l, as I recall, there 

 are only a very small numher of States now that have not pood hasic 

 laws for the operation of cooperative associations. 



Mr. liiCH.w.w. Do those laws exempt the individind miMuhers 

 from individual liahility '. 



Mr. Tknw. Vou mean state the duti<'s (tf the associations^ 



Mr. Hi'cii.WA.N. Are they nut on the same hasis as corporations '. 



Mr. Tkn.n'v. Yes: practically. 



Mr. Ik'("iiAX.\.\. ^^ith a corj)oration, individual memhers are not 

 individually responsihie f«»r tlie acts of the corporation. What I 

 want to know is do tlmse laws exempt th(> individual memhers of flic 

 cooperatives from individual liahilitv^ 



^l^. Tennv. Yes; in practically all cases, especially the newer laws. 



The second line of study hein*; institute<l under this cooperative 

 work is what mi^lit he termed " economic study." We are collecting 

 information regarding the 100 or more outstanding successful coopera- 

 tives, and hy "outstanding" I imply especially those that have been 

 operating for a comparatively long period. And we are getting a 

 great deal of valuahle information regarding these associations — 

 whether they are stock companies or nonstock companies; the 

 numher of members that they have; the annual turnover; the kind 

 of contract tliat they have between the member and the association; 

 their sales policies and methods of financing; and all other factors 

 that enter into the successful operation of their business. 



We are collecting that, first, ny corresj)ondence; but we are taking 

 a few, as the nn'U are able to take them up. and making a very care- 

 ful analysis of them and publishing these individual studies. 



Tlie first one is on the press now, and that is on the American 

 ("lanberry Exchange, which is an old organization. We have made 

 a very careful economic study of that organization, as to how it 

 functions over a period of years and what it has accomplished, and 

 1 feel that these individual studies will be of very great assistance to 

 (tther people who are intereste<l in organization work. 



A sec(»n(l study is n»)w being put in final form, that of the Cali- 

 fornia Fruit Growers' Kxchange. California. That has operate<l for 

 20 years, or thereabouts, doing about $2"), 000, 000 of business annually. 

 And just as fast as we can we want to take up some milk-marketing 

 studies, some cooperative tolnicco anti c<»tton associations, live- 

 stock associations, and studies covering the entire agricultural field. 



